Question

Marge puts 800 in a bank account that earns 3% annual interest. if she leaves the money in the bank but does not add to it, how much will she have at the end of the first year?

a. 800
b. 803
c. 824
d. 830

Answer 1

Marge will have $824 at the end of the first year, as the simple interest calculation is $800 * (1 + 0.03), which equates to $824.

Step-by-step explanation:

Marge puts $800 into a bank account that earns 3% annual interest. To calculate the total amount she will have at the end of the first year, we can use the formula for simple interest, which is Principal * (1 + Rate). Since she is not adding to the money or compounding the interest, the calculation is straightforward:

$800 * (1 + 0.03) = $800 * 1.03 = $824

Therefore, at the end of the first year, Marge will have $824 in her account, making option c the correct answer.